Both ________ and ________ were financial innovations that occurred because of interest rate risk volatility.

Question

Quizplus · Accepted Answer

Adjustable-rate mortgages (ARMs) were created as a financial innovation to mitigate interest rate risk volatility for borrowers. Financial derivatives were also developed to help manage interest rate risk for investors and financial institutions. Other options, such as sweep accounts and commercial paper, may have been influenced by interest rate risk volatility to some extent, but they are not directly related to managing this risk.

Both ________ and ________ Were Financial Innovations That Occurred Because

Both and Were Financial Innovations That Occurred Because